Tag Archive for 'Ditch Witch'

The Toro Company to Acquire The Charles Machine Works, Inc. 

The Toro Company to Acquire The Charles Machine Works, Inc. 

Parent Company of a Strong Portfolio of Underground Construction Brands 

Including Market-Leading Ditch Witch 

The Toro Company (NYSE: TTC) today announced that it has entered into a definitive agreement to acquire privately-held The Charles Machine Works, Inc., an Oklahoma corporation and the parent company of Ditch Witch and several other leading brands in the underground construction market, for $700 million in cash subject to certain adjustments set forth in the definitive agreement. The transaction is subject to regulatory approvals and other customary closing conditions and is currently anticipated to close before the end of Toro’s fiscal 2019 third quarter. More detailed information regarding the transaction is included in an investor presentation available at www.thetorocompany.com.

Headquartered in Perry, Oklahoma, Charles Machine Works designs, manufactures and sells a range of products to cover the full life-cycle of underground pipe and cable, including horizontal directional drills, walk and ride trenchers, utility loaders, vacuum excavators, asset locators, pipe rehabilitation solutions and after-market tools. The company, known as “The Underground Authority” for their deep understanding of the structures and systems in those markets, and the most important needs of underground construction professionals, generated calendar year 2018 revenues of approximately $725 million.

“The addition of Charles Machine Works will further strengthen our portfolio of market-leading brands supported by talented employees, a commitment to innovation, a best-in-class dealer network and long-standing customer relationships,” said Richard M. Olson, Toro’s chairman and chief executive officer. “As an organization, Charles Machine Works aligns well with and will contribute to our own strategic priorities of profitable growth, operational excellence and empowering people. The company expands our business in a meaningful way in an adjacent category we know well through our own specialty construction business and in a market that is attractive given the potential for growth in addressing both aging infrastructure that is currently in place and new infrastructure that will be needed to support next-generation technologies like 5G.” 

“Culturally, our two organizations are very well aligned and, in our past experience, that has been essential to the success of a business combination like this. We share similar people values, performance expectations, business models focused on innovation, brand and channel, and strong community ties. With its rich multigenerational family legacy, commitment to its employees and market leadership position, we have respected and admired Charles Machine Works for a long time. We were excited when joining forces became a possibility, and we know that both companies will be stronger together.”

“Our success is the result of years of hard work and an unwavering commitment to developing innovative solutions for customers,” said Rick Johnson, Charles Machine Works chief executive officer. “From developing the world’s first service line trencher in Perry, Oklahoma, to today’s robust Ditch Witch dealer network, our family of companies is well-positioned to join The Toro Company’s family of brands. We look forward to building upon our founder’s legacy of best-in-class offerings in the expanding underground construction market.”

Toro expects to finance the transaction with a combination of cash on hand and debt, including from additional financing arrangements and borrowings under its existing credit facility. The all-cash purchase price of $700 million represents a multiple of approximately eight times Charles Machine Works’ calendar year 2018 EBITDA, including $30 million of anticipated annual run-rate cost synergies phased in over three years, that Toro intends to achieve through opportunities in purchasing, manufacturing best practices and administrative efficiencies. Toro expects the transaction to be immediately accretive to EPS excluding purchase accounting adjustments and transaction related expenses.

J.P. Morgan Securities LLC acted as financial advisor to Toro and Fox Rothschild LLP and Latham & Watkins, LLP acted as Toro’s legal counsel. Bank of America Merrill Lynch and J.P. Morgan Chase Bank, N.A. have provided committed debt financing to Toro for the transaction. McAfee & Taft A Professional Corporation, acted as Charles Machine Works’ legal counsel.

 

CONEXPO Products from: Ditch Witch, Doosan Portable Power, Hilti, Hyundai, KCM, Komatsu, Liebherr, Tadano

Ed Malzahn Ditch Witch founder, industry leader, innovator and inventor died December 11, at the age of 94.

 

Ditch Witch inventor and industry developer Gus Edwin “Ed” George Malzahn died Friday. He was 94.

 Ed Malzahn

Ed Malzahn

The first commercial Ditch Witch product was introduced in 1949. It was the first mechanized, compact, service-line trencher developed for laying underground water lines between the street main and the house. The Ditch Witch trencher solved an age-old problem for the utility contractors of its day.

With the growing popularity of the Malzahns’ trencher, Charlie’s Machine Shop became The Charles Machine Works, Inc., which still maintains its headquarters in Perry, Oklahoma, a town of about 5,000 residents in the north-central part of the state. In addition to trenchers, the company today designs and manufactures a wide variety of underground construction equipment bearing the Ditch Witch name.

Tiffany Sewell-Howard, Ed Malzahn

Tiffany Sewell-Howard, Ed Malzahn

Tiffany Sewell-Howard, Ed Malzahn’s granddaughter, became CEO of The Charles Machine Works, Inc., in 2005. Now in his 90s, founder Ed Malzahn still serves as company president and chairman of the board.

The Perry, Oklahoma, headquarters of the Ditch Witch organization is on an expansive campus that contains the company’s 30-acre (120,000 m2) manufacturing plant and training, testing, research and product development facilities. Ditch Witch worldwide headquarters employs more than 1300 people.

The Ditch Witch compact trencher has twice been named “one of the 100 best American-made products in the world” by Fortune magazine. In 2002, the DWP was designated a historical mechanical engineering landmark by the American Society of Mechanical Engineers.

Malzahn is survived by his three children, nine grandchildren and 13 great-grandchildren.

Related:

The Oaklahoman http://newsok.com/article/5466810

Ditch Witch Memorial Guest Book

http://edmalzahn.com/guestbook

http://www.ditchwitch.com

AEM Hall of Fame 

https://www.aem.org/HallOfFame/HallOfFamers/Bio/?I=38

Wikipedia

https://en.wikipedia.org/wiki/Ditch_Witch

New Equipment From Dynapac, CAT, Ditch Witch, I-Rock, Hitachi, IMT, Doosan and John Deere

Products 1 Products 2 Products 3 Products 4

Ditch Witch UnderCon Opens New Dealership Location in Park City, Kansas

Ditch Witch UnderCon has opened a new 20,000 square foot dealership location in Park City, Kansas, to serve underground construction operators throughout the state.

“This new location is nearly double the size of our previous Kansas dealership and allows us to expand our equipment, parts and services offerings,” said Lenny Sadler, CEO of Ditch Witch UnderCon. “Our full line of Ditch Witch trenching and underground equipment, combined with our industry expertise and support capabilities, will help more Kansas contractors do their underground construction jobs with both the machines and know-how that they need.”

Ditch Witch UnderCon sells a complete line of Ditch Witch equipment, such as directional drills, vacuum excavators, boring machines and trenchers. The company also rents and leases equipment, and provides a full spectrum of parts and support services.

An open house celebrating the new Park City facility included a tour with Ditch Witch personnel, equipment displays and a raffle.

The new dealership is open and located at 7825 N. Hartman Arena Drive, Park City, Kansas, 67147. To contact the facility, call 316-755-1911, fax 316-755-0519, or visit dwundercon.com.

Ditch Witch UnderCon also has locations in Amarillo, Texas, and Grand Island and Gering, Nebraska.

Ditch Witch UnderCon welcomes local customers to new dealership location in Park City with an open house.

Ditch Witch UnderCon welcomes local customers to new dealership location in Park City with an open house.

 

(Pictured left to right) Jake Sadler, COO of UnderCon, Don Malzahn – Vice Chairman of the Board, The Charles Machine Works, Inc., Tiffany Sewell-Howard – Chief Executive Officer of The Charles Machine Works, Inc., and Lenny Sadler, CEO of UnderCon.

(Pictured left to right) Jake Sadler, COO of UnderCon, Don Malzahn – Vice Chairman of the Board, The Charles Machine Works, Inc.,
Tiffany Sewell-Howard – Chief Executive Officer of The Charles Machine Works, Inc., and Lenny Sadler, CEO of UnderCon.

(Pictured left to right) Lenny Sadler, CEO, Josh McKown, Branch Manager, and Jake Sadler, COO, participate in a ribbon-cutting ceremony during a Ditch Witch UnderCon open house for the company’s new dealership in Park City, Kansas.

(Pictured left to right) Lenny Sadler, CEO, Josh McKown, Branch Manager, and Jake Sadler, COO, participate in a ribbon-cutting ceremony during a Ditch Witch UnderCon open house for the company’s new dealership in Park City, Kansas.